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Express trust alleged to protect deposits

Designing a kitchen takes time and effort.  And about a billion magzines.  You finally get it nutted down.  Kitchen professional is chosen, design finalised, deposit paid.  At this point thoughts of trusts are as far from your mind as possible, your mind being full of composite vs granite.  Will marble really stain that badly (ah … Continue reading

Not a good time

All good things must come to an end.  This is certainly true of trusts, whether good or not.  However, sometimes it just isn’t a good time for a trust’s assets to vest.  The reason for this are many and varied.  Often they involve tax.  For example if the trust’s assets comprise an immature forest and the trust … Continue reading

The high cost of obfuscation

Costs are an increasingly live issue in court proceedings.  The risk of a loss and the resultant costs is a valid, and important, consideration when contemplating proceedings.  When the proceedings relate to a trust, the matter is more complex due to the trustees’ right of indemnity from the trust fund.  However, given that whenever the … Continue reading

The minority can inherit the earth … sometimes

A little licence in the heading, maybe not the earth, but in some circumstances, an interest in trust at least. The rule in Saunders v Vautier allows the final beneficiaries of a trust to bring the trust to an end provided that all of the trustees are in agreement and are of age. The rule … Continue reading

Know thy beast

A constructive trust claim provides instructive reading into recognising what it is that you are after before you begin.  It begins, as is so often the case with trust cases, with a failed relationship.  There was a home owned and constructed by a trust that was settled well before the relationship began.  After the relationship ended … Continue reading

Providing trust assets does not ensure later control

It may seem somewhat trite law that once a trust is settled, the settor loses the right, by virtue of having made that settlement, to control the trustees.  To put this another way, just because you are the source of the trust’s assets, you cannot determine how these assets are utilised.  This fundamental proposition of trust … Continue reading

Going beneath the skin of the legal form

Marriage break ups are messy.  You don’t usually need to scratch much below the surface to find that out.  Who said what unbelievable thing.  Who did what unbelievable thing.  Who slept with a party outside of the union.  We’ve all seen it / read about it (maybe talked a bit more about it than we … Continue reading

Unanimity and avoidance of self-dealing – care required

The case of Dever v Knobloch is not especially new.  However, it is surprising how many times I have looked back to refer to it. The facts of the case are not particularly interesting – essentially no more than another family dispute where the existence of a discretionary trust does not forestall expectations of equal … Continue reading

Corporate trustee associated for GST purposes

When vendor and purchaser are associated companies the amount of secondhand goods credit that can be claimed is limited to the lesser of the: GST included in the original cost of the goods to the supplier [GST] tax fraction of the purchase price, and tax fraction of the open market value of the supply. The tests of … Continue reading